The setup features a deep head between March and April 2025, flanked by a left shoulder in early February and a right shoulder that took shape across June and July. The upside breakout occurred when Bitcoin decisively moved above the neckline at $110,000, and eventually pushed to its most recent all-time high of $122,838 on July 14.
However, the ensuing retest after this peak until the time of writing is what Merlijn refers to as a “bullish retest,” in which price revisits the breakout level without breaching below the neckline. This is a strong indicator that the previous neckline resistance has now become support.
As noted by Merlijn, this pattern checks every technical box, and major moves in the crypto market often begin subtly before erupting violently. In terms of a price target, the chart’s projection is a potential surge to $145,000. This projection is based on if Bitcoin can successfully bounce upward on the breakout line, as shown in the 3-day candlestick price chart above.
At the time of writing, Bitcoin is trading at $114,260, up by 0.8% in the past 24 hours. A surge to the $145,000 price target would translate to a 27% increase from the current price levels.
